BUFFALO, N.Y. (WKBW) — Online sports betting legally launched last year in New York, making it more accessible to gamble on games. You can win right from your couch on apps like FanDuel, DraftKings, and Caesars Sportsbook, but the IRS wants to remind you that one simple mistake could have you sitting behind bars.
"We just want to get the message out there that people should be aware that they should be reporting their winnings," said said Tom Fattorusso, Special Agent in Charge of IRS Criminal Investigations for New York’s field office.
"It doesn’t matter how much or how little you’re winning, you should always ask a tax professional how it should be reported just incase," said Fattorusso. "It is income."
He said not reporting winnings could lead to financial penalties, criminal fraud investigations or even prison.
Between 2021-2023, IRS Criminal Investigations has looked into more than 100 illegal sports gambling situations nationwide, which totaled more than $178 million. 89 of these cases led to people being criminally charged, with a 96% conviction rate.
Fattorusso said the average sentence was 23 months in prison. He said have records of all your wins and losses to bring to your tax professional when you file taxes. You can access this through the online sportsbook that you use.
